Interim
Joint Committee on Agriculture

Subcommittee
on Horse Farming

Minutes
of the<MeetNo1>2nd Meeting

of
the 2012 Interim

<MeetMDY1>November 14, 2012

Call to Order and Roll Call

The<MeetNo2>2nd meeting of the Subcommittee on Horse
Farming of the Interim Joint Committee on Agriculture was held on<Day>Wednesday,<MeetMDY2>November
14, 2012, at<MeetTime>10:00 AM, in<Room>Room 129 of the Capitol Annex. Representative
Susan Westrom, Chair, called the meeting to order, and the secretary called the
roll.

The October 10, 2012, minutes were
approved, without objection, by voice vote, upon motion made by Senator Thayer
and second by Senator Parrett.

Kentucky Horse
Council

The subcommittee first heard from Ms. Ginny Grulke,
Executive Director of the Kentucky Horse Council (KHC), Mr. Ben Shaffar, with
the Kentucky Department of Agriculture’s Kentucky Proud Program, and from Ms.
Erin Woodall, Chair of the Kentucky Breeds and Disciplines Council.

Ms. Grulke discussed a range of issues, including the
general status of the horse industry in Kentucky, the comprehensive equine
survey, the possible need to seek legislation related to the special license
plate, and the Kentucky Proud designation for horse farms.

Ms. Grulke said that the horse industry is beginning to
recover from the recession. Race horse sales are up, and there is more activity
related to the breeding side of the industry. There appear to be fewer reports
of abandoned or neglected horses, which was a problem during the height of the
recession.

Ms. Grulke discussed the KHC-initiated equine survey. The
University of Kentucky Equine Initiative is coordinating the survey in
conjunction with the University of Louisville’s Equine Business Program and the
National Agricultural Statistics Service (NASS). Of the 15,000 names of horse
owners identified initially, about 10,000 responded to the survey. In the
months ahead, NASS will be generating data collected, there will be some
follow-ups in low response areas, and consumer data (such as horse show and
race track attendee spending) will be collected.

Responding to Senator Webb, Ms. Grulke indicated the
compliance rate for the survey was good, although owners in some counties did
not respond. Senator Webb mentioned that some people in her area may have been
reticent to respond.

Ms. Grulke described to Representative Adams how KHC has
gone about addressing some misunderstandings about the survey information. Results
from the survey can show the scope of the industry in the state and be used to
justify the need for a sales tax exemption long sought for horse farms.

In response to Co-chair Thayer, Ms. Grulke described how the
council operates. She said that 2012 marks the 40th anniversary of
the organization.

Ms. Grulke mentioned the possible need for legislation
allowing owners of registered farm trucks to buy the special Horse Council
equine license plate, from which a portion of revenue supports the KHC.

Ms. Grulke introduced Ms. Shaffar and also took part in the
Kentucky Proud discussion.

Mr. Shaffar testified about how horse farms can become
designated as Kentucky Proud facilities. The program promotes Kentucky grown or
processed agricultural products. Horse farms would need to meet Kentucky Proud standards,
be eligible to receive grants from the Department of Agriculture, and be
eligible to participate in a cost-share program.

Ms. Grulke and Mr. Shaffar explained to Senator Webb the
Kentucky Proud standards for horse farms. Ms. Grulke indicated that a horse
born in Kentucky can be tied to the program.

Responding to Senator Thayer, Ms. Grulke and Mr. Shaffar
said the designation will give horses brand recognition, plus the financial
incentives would be available. Ms. Grulke noted that Breeders’ Incentive Fund
Program awards generally go to those involved in horse racing or showing, but
the Kentucky Proud designation would provide a boost to those not involved in
racing or showing, such as exhibitors at county fairs.

Senator Thayer advised them to “proceed with caution” and
urged cooperation between Kentucky Proud for horses and the Breeders’ Incentive
Fund Program.

In remarks to the
witnesses, Senator Webb said Kentucky Proud for horses is a form of
agricultural diversification.

Prior to Ms. Woodall’s
remarks, Senator Thayer mentioned the problem in Kentucky with horse trail
riders getting access to trails on public lands.

Ms. Woodall discussed the concept of the Kentucky Breeds and
Disciplines Council. The idea behind the council is to provide a venue to share
ideas by those involved in all equine disciplines and to offer suggestions to
the KHC.

Senator Webb, a
Tennessee Walking Horse rider, introduced the speakers. She mentioned that
Representative Gregory, who was unable to attend the meeting, shows Tennessee
Walking Horses.

Mr. Irby testified about
the scope of the breed and the history of the TWHBEA. The breed registry was
formed in 1935 and currently has 10,000 members in the U.S. and worldwide.

Mr. Irby told the
subcommittee that Kentucky important to the association. For example, Kentucky
ranks second to Tennessee in the number of TWHBEA members. There are almost
35,000 registered Tennessee Walking Horses in Kentucky. In 2011, almost 1,300
mares were bred in Kentucky and almost 550 foals born. Six Grand Champion
Tennessee Walking Horses were bred in Kentucky and two World Grand Champion
Tennessee Walking Horses were owned in the state in 2011. The horse is a
versatile breed and is shown and is ridden for pleasure.

Mr. Thomas talked about the history of the breed as a
utility horse suited for a recreational mount due to its smooth, easy ride, and
gentle disposition. The breed was founded in middle Tennessee. The first
Tennessee Walking Horse show occurred in Shelbyville, Tennessee, which is home
of the Tennessee Walking Horse National Celebration.

He addressed the
controversy surrounding some who abuse the horses in training and showing. Mr.
Thomas said his organization has worked hard to rectify the problem and separate
itself from those who do not act appropriately.

Responding to Senator
Webb, Mr. Thomas described the classic class as a competition class for older
horses, 15 or older.

Senator Web talked about
the wide range in ages of riders. She described one 93-year-old show
participant. Mr. Irby indicated he started riding at age 3.

Ms. Starnes talked about
her involvement with the breed and expressed her appreciation for the Kentucky
Breeders’ Incentive Fund Program. Mr. Irby also expressed his appreciation for
the program.